19 days ago • Posted by Paul de La Baume

#Inflation worst than expected. #CPI #markets #S&P500 #Nasdaq $SPY $QQQ #Oil

Core CPI data came out slightly worst than expected with a year-over-year price increase of 6% versus 5.9% expected and 0.6% month-over-month versus 0.5% expected. Headline CPI made a new high at 8.6% versus 8.3% expected, worrying investors of sticky inflation that may last longer and trigger the Fed to pursue more aggressive tightening measures to reign in demand and in turn inflation. Markets doubt the Fed can avoid a recession if it follows aggressive interest rate hikes. US stocks reacted with a swift selloff of around 1%, on top of the steep decline of the night before. 2-year yield surged above 2.9%, while the 10-year held steady at 3.02%. It remains to be seen if downward growth and earnings revisions will continue amid a more and more uncertain environment and soaring price pressures.